Goldman Sachs Sees 'Early Stages Of Nuclear Renaissance In US:' Analysts Highlight Top Stock Poised To Benefit From Data Centers' Energy Demand

Once sidelined in favor of renewable sources, Goldman Sachs analysts suggest we are in the “early stages of nuclear renaissance in the U.S.”

Growing support from governments and major investments from tech giants like Microsoft Corp. (NYSE:MSFT), Amazon.com Inc (NASDAQ:AMZN), and Alphabet Inc. (NASDAQ:GOOGL) are driving the momentum.

Nuclear Power's Growing Role In Data Center Energy Demand

Goldman Sachs analysts, led by Brian Singer, highlight the mounting pressures of data center power needs, which they estimate will grow 165% by 2030 compared to 2023 levels.

This surge in demand is motivating “Big Tech” to diversify power sources, with a notable shift towards nuclear energy.

“We continue to see Big Tech taking an all-in approach to sourcing power and pursuing low-carbon solutions,” Singer stated.

He added, "While we continue to assume renewables will meet only 40% of data center power demand growth through 2030, we see potential for a significant rise in nuclear's share in the 2030s."

The limitations of renewable energy sources like solar and wind, which require substantial land, have made nuclear a compelling alternative. According to Singer, natural gas and nuclear require a much more modest acreage footprint versus utility-scale solar.

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